Supply and demand creating huge investment potential for Newcastle student property

Supply and demand creating huge investment potential for Newcastle student property

With UK’s universities and higher education institutions being a major draw for both domestic and overseas students, there continues to be a significant supply and demand issue regarding student property. This is particularly illustrated in Newcastle where, according to a recent Knight Frank report, the demand for PBSA (purpose-built student accommodation) far outweighs the supply in this ever-popular student city.

Boasting two world class universities with Newcastle University and the University of Northumbria, there are over 43,000 students but only 8, 365 beds available, either in halls of residence or bedrooms under nomination agreements.

When you throw into the mix other student property that is available in the city, it still only represents 40% of the total student population. In light of this, many students are having to rely on HMOs and other housing stock of dubious quality, often paying rents that do not include utilities.

As both universities continue to invest in their infrastructures such as the £250 million Science Central project for Newcastle University and the £200 million investment in the University of Northumbria’s city centre campus, student numbers are predicted to grow further still over the next few years.

So, where are all these students going to live?

Whilst new PBSA developments are springing up across the city, they cannot keep pace with demand. This spells good news for investors who will be able to enjoy huge demand for student property and highly attractive rental yields, as students and their parents pay a premium for the best developments.

If you’re looking for a strong investment opportunity, it would appear that student property in Newcastle ticks all the boxes.